Releases. New products 15

Transcription

1 Catalogue XIE (Français XIF) ISSN Thursday, August 30, Released at 8:30 a.m. Eastern time Releases Canada s balance of international payments, second 2 Canada s current account surplus with the rest of the world, on a seasonally adjusted basis, increased $2.2 billion in the second to $8.4 billion. In the capital and financial account (not seasonally adjusted), the growth in Canada s foreign assets significantly outpaced that in international liabilities. Industrial product and raw materials price indexes, July 8 In July, falling prices for metals and the strength of the Canadian dollar drove the prices of manufactured products down for a third consecutive month, while a jump in crude oil prices pushed raw materials prices upward. Public sector employment, second 12 Public school indicators, 1998/1999 to 2004/ Computer and peripherals price indexes, June 13 Poultry and eggs, 14 Couriers and Messengers Services Price Index, July 14 New products 15

2 End of text End of release The Daily, August 30, Releases Canada s balance of international payments Second Canada s current account surplus with the rest of the world, on a seasonally adjusted basis, increased $2.2 billion in the second to $8.4 billion. Most of the gain came from a third consecutive improvement of the trade-in-goods surplus, as imports declined slightly in the second. Current account balance $ billions Seasonally adjusted II III IV I II III IV I II III IV I II III IV I II In the capital and financial account (not seasonally adjusted), the growth in Canada s foreign assets significantly outpaced that in international liabilities. Canadian portfolio investment in foreign securities continued to be the driving force behind the increase in foreign assets. Current account Goods surplus increases again The surplus on trade in goods went up for the third consecutive, reaching its highest level since the fourth of The $1.6 billion increase pushed the surplus to $16.3 billion in the second as imports declined by $2.0 billion. Note to readers The balance of payments covers all economic transactions between Canadian residents and non-residents. It includes the current account and the capital and financial account. The current account covers transactions on goods, services, investment income and current transfers. Transactions in exports and interest income are examples of receipts, while imports and interest expenses are payments. The balance from these transactions determines if Canada s current account is in surplus or deficit. The capital and financial account is mainly composed of transactions in financial instruments. Financial assets and liabilities with non-residents are presented under three functional classes: direct investment, portfolio investment and other investment. These investments belong either to Canadian residents (Canadian assets) or to foreign residents (Canadian liabilities). Transactions resulting in a capital inflow are presented as positive values while capital outflows from Canada are shown as negative values. A current account surplus or deficit should correspond to an equivalent outflow or inflow in the capital and financial account. In other words, the two accounts should add to zero. In fact, as data are compiled from multiple sources, the two balance of payments accounts rarely equate. As a result, the statistical discrepancy is the net unobserved inflow or outflow needed to balance the accounts. After recording a record level during the first, imports shrank by $2.0 billion to $102.8 billion in the second. Imports of machinery and equipment, automotive products and consumer goods all fell, largely due to lower prices. Energy products were the exception, with imports increasing by $1.1 billion from the previous. Of the $1.3 billion drop in automotive products imports, $1.0 billion was related to motor vehicle parts, which are usually closely related to the exports of cars. Exports of industrial materials increased by $1.4 billion, registering its seventh consecutive record high ($27.4 billion). This was offset by declines in exports of other goods, leaving total exports at virtually the same level as in the first. Once again, the increase in exports of industrial materials was mainly due to higher prices. Most of the increase was driven by inorganic chemicals, including uranium, and nickel and copper components, where prices rose, on average, by almost 30% in the second. Exports of energy products rose $0.6 billion, due to increased volume and higher prices for petroleum products and coal products. However, crude petroleum 2 Statistics Canada - Cat. no XIE

3 exports fell half a billion dollars during the second. These increases were offset by lower exports of automotive products, and machinery and equipment. Exports of cars, trucks and parts declined $1.5 billion to $19.4 billion. There has been persistent weakness in automotive exports recently. In fact, the five lowest levels since the end of 1998 have been registered during the last five s. Forestry products exports continued their downward trend. In the last three years, exports of forestry products have declined by more than 25%, as the soft US housing market and the strong Canadian dollar have led to reduced export volumes as well as lower prices for Canadian producers. Goods and other current account balances $ billions Seasonally adjusted II III IV I II III IV I II III IV I II III IV I II Canadian travel expenditure in the United States declined 3% in the second, despite an increase in the number of Canadians traveling south of the border. The increased number of travellers to the United States was mostly due to same-day trips. Although, in general, these travellers represent 60% of all Canadians going to the United States, their expenses account for only around 10% of all Canadian travel expenses in that country. The transportation deficit also shrank by $0.1 billion, largely because of passenger fares. At the same time, the deficit in commercial services increased slightly, maintaining its highest level since the fourth of 2004, as a higher deficit in financial services was partially offset by a lower deficit on transactions in royalties and license fees. Investment income deficit remains stable As both receipts and payments barely changed in the second, the deficit on investment income stood at $4.1 billion. Profits earned by foreign direct investors in Canada increased $0.4 billion to $8.5 billion, just a few million dollars shy of the record observed in the third of This was offset in part by slightly lower payments of interest, notably on corporate and provincial enterprise bonds as both sectors count on a large share of bonds issued in US dollars. Profits from Canadian direct investment abroad dropped slightly by $0.1 billion to $7.5 billion, but still remained historically high. Interest earnings on foreign bonds continued to grow, gaining another $0.1 billion in the second. Canadians have made substantial acquisitions of foreign bonds in recent years. Goods Other current account Financial Account Small improvement in the services deficit For the second consecutive, the services deficit declined slightly but remained near its record high. For the second consecutive, the travel deficit edged down $0.1 billion. There were more travellers from the United States visiting Canada for both same-day trips and longer trips in the second, resulting in a 4% increase in expenditures by visitors from the US. Strong Canadian investment persists in foreign securities Following a record investment of $26.0 billion in the previous, Canadian investment in foreign securities maintained its torrid pace in the second. Continuing a well-established trend, the bulk of the $23.8 billion of acquisitions was in foreign bonds with most of the remaining investment in foreign stocks. Statistics Canada - Cat. no XIE 3

4 Canadian portfolio investment abroad¹ $ billions Stocks Debt securities II III IV I II III IV I II III IV I II III IV I II Reverse of balance of payments signs. Investment in foreign bonds remained robust in the second as Canadian investors acquired $16.0 billion worth, nearly matching the record investment of $16.5 billion set in the first. Some $10 billion worth of the investment in foreign bonds was denominated in Canadian dollars (maple bonds), bringing the year-to-date total to $22.8 billion. Canadians bought a further $7.5 billion of foreign stocks in the second after purchasing $9.3 billion worth in the first. Almost two-thirds ($4.9 billion) went to non-us stocks, the largest ly investment in non-us stocks since the second of Investment in foreign money market paper totalled $239 million for the with purchases mainly focused on issues of US corporations. However, these acquisitions were largely offset by a substantial divestment of US treasury bills. Over the, the interest rate gap between Canada and the US on treasury bills continued to narrow in Canada s favour. Direct investment abroad slides to its lowest level in five s Direct investment abroad amounted to $9.8 billion in the second, a significant slowdown after four very strong s, where investment averaged $15.7 billion. This s investment was largely explained by additional capital injected into existing foreign affiliates, mainly reinvested earnings. Direct investment abroad was almost entirely directed to the finance and insurance industry ($9.4 billion) and mainly targeted the US economy (52%). Acquisitions boost foreign direct investment in Canada Foreign direct investors added another $17.1 billion into the Canadian economy during the second, bringing the total investment so far this year to $39.2 billion. This was the second highest investment ever for the first six months of a year. Foreign direct investment in Canada $ billions II III IV I II III IV I II III IV I II III IV I II Other direct investment Acquisition of direct investment interest The bulk of the foreign injections in the second were explained by acquisitions ($12.4 billion). Over the last four s, foreign acquisitions in the Canadian economy have totalled $70.1 billion, representing three-s of all the money injected by foreign direct investors during this period. European investors dominated in the second with investments totalling $9.4 billion, followed by US investors ($4.9 billion). Energy and metallic minerals continued to be a sector that attracted the attention of foreign direct investors as they invested in this sector for a 10th consecutive ($9.2 billion). Foreign investors sell some of their holdings of Canadian securities Foreign investors sold $4.8 billion worth from their holdings of Canadian securities over the second, their first divestment in two years. The s 4 Statistics Canada - Cat. no XIE

5 divestment occurred almost entirely in Canadian bonds with only a slight reduction in holdings of Canadian stocks. These were partially offset by non-residents investments in Canadian money market paper. Non-residents withdrew $4.9 billion worth of Canadian bonds from their investment portfolios, entirely due to a divestment of $6.0 billion in outstanding government issues, mostly issues of the Government of Canada. It was the largest foreign divestment in Canadian bonds in nearly four years and reversed a trend of strong foreign investment in these instruments observed since the third of. Non-resident holdings of Canadian equities were reduced by $899 million over the second. Foreign investment in outstanding shares ($3.3 billion) was overwhelmed by net retirements ($4.2 billion), mainly due to foreign takeover activity. Over the last three s, this activity has reduced foreign portfolio holdings by $16.0 billion despite investment in outstanding shares totalling $9.3 billion. The Standard and Poor s/toronto Stock Exchange index rose 5.6% between March and June. Non-residents bought $1.0 billion worth of Canadian money market paper during the second. Investment was focused on Canadian corporate paper as foreign investors acquired $961 million worth. Transactions in deposits, loans and reserves assets and reserves, recorded a net inflow of $9.4 billion in the second. This was up from a net inflow of $2.5 billion in the first, and was essentially due to sizable inflows of international deposits for a second consecutive, which more than offset increases in Canadian assets. The Canadian dollar made significant gains during the against all major currencies, closing the at 93.9 US cents, an increase of over 7 cents on the American dollar. Available on CANSIM: tables to and Definitions, data sources and methods: survey numbers, including related surveys, 1534, 1535, 1536 and The second issue of Canada s Balance of International Payments ( XWE, free) will be available soon. The balance of international payments data for the third will be released on November 29. For more information, contact Client Services ( ; infobalance@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Arthur Berger ( ), Balance of Payments Division. The other investment category of the financial account, which comprises international loans, deposits Statistics Canada - Cat. no XIE 5

6 Balance of payments Second Third Fourth First Not seasonally adjusted Second 2005 $ millions Current account Receipts Goods and services 132, , , , , , ,926 Goods 115, , , , , , ,696 Services 16,857 19,480 15,573 15,736 17,016 66,979 67,230 Investment income 14,748 16,492 17,050 15,519 16,587 48,213 61,599 Direct investment 7,609 8,677 9,523 7,523 8,026 26,017 32,600 Portfolio investment 4,202 4,262 4,682 5,215 5,420 12,380 16,867 Other investment 2,937 3,554 2,844 2,781 3,140 9,816 12,131 Current transfers 2,021 1,920 2,704 2,871 2,140 8,176 9,682 Current account receipts 149, , , , , , ,207 Payments Goods and services 125, , , , , , ,789 Goods 104, , , , , , ,395 Services 20,450 21,028 20,207 21,776 20,990 79,141 82,394 Investment income 18,108 18,006 19,888 21,122 20,108 70,735 73,446 Direct investment 8,145 7,608 8,573 8,986 9,137 34,212 31,091 Portfolio investment 6,602 6,783 7,129 7,049 6,940 27,897 27,094 Other investment 3,361 3,616 4,186 5,087 4,031 8,625 15,260 Current transfers 1,781 2,090 2,859 3,541 1,875 9,051 10,394 Current account payments 145, , , , , , ,629 Balances Goods and services 7,095 10,099 8,190 8,697 10,762 51,340 36,137 Goods 10,688 11,646 12,824 14,737 14,736 63,501 51,302 Services -3,593-1,548-4,635-6,040-3,974-12,162-15,165 Investment income -3,359-1,514-2,839-5,603-3,522-22,522-11,847 Direct investment , ,463-1,111-8,195 1,509 Portfolio investment -2,400-2,521-2,447-1,834-1,519-15,518-10,227 Other investment ,342-2, ,191-3,129 Current transfers Current account balance 3,975 8,415 5,197 2,424 7,506 27,943 23,578 Capital and financial account 1, 2 Capital account 1, ,247 1,165 5,940 4,201 Financial account -5,769-7,587-1,164-11,434-11,705-38,287-22,741 Canadian assets, net flows Canadian direct investment abroad -15,787-13,245-17,046-16,618-9,780-40,645-51,322 Portfolio investment -20,808-20,372-17,637-26,015-23,756-53,279-78,693 Foreign bonds -12,689-9,533-10,767-16,450-16,016-29,238-43,602 Foreign stocks -9,055-5,892-5,142-9,333-7,502-21,951-28,291 Foreign money market 936-4,946-1, ,089-6,800 Other investment -20,938-12,939 19,796-21,215-14,921-22,157-35,325 Loans -4,317-6, ,524 4,300 8,217-12,201 Deposits -16,742-4,069 25,901-6,126-9,068-15,817-8,183 Official international reserves ,662-4, ,653-1,013 Other assets ,545-8,195-5,843-9,787-12,903-13,927 Total Canadian assets, net flows -57,533-46,555-14,887-63,848-48, , ,339 Canadian liabilities, net flows Foreign direct investment in Canada 8,784 27,223 27,047 22,050 17,145 35,046 78,317 Portfolio investment 12,849 4,166 5,328 6,673-4,751 9,577 32,544 Canadian bonds ,351 12,341 7,906-4, ,015 Canadian stocks 9,091-1,034-5, ,133 10,814 Canadian money market 4,602-1,151-1, , ,715 Other investment 30,131 7,579-18,653 23,690 24,358 33,171 31,737 Loans 3,226 7, ,177 1,975 3,496 11,873 Deposits 27, ,032 21,844 22,329 28,951 20,724 Other liabilities , Total Canadian liabilities, net flows 51,764 38,968 13,723 52,414 36,752 77, ,598 Total capital and financial account, net flows -4,694-6, ,187-10,541-32,347-18,540 Statistical discrepancy 719-1,821-4,984 7,764 3,035 4,404-5, A minus sign denotes an outflow of capital resulting from an increase in claims on non-residents or from a decrease in liabilities to non-residents. 2. Transactions are recorded on a net basis. 6 Statistics Canada - Cat. no XIE

7 Current account Second Third Fourth Seasonally adjusted First Second 2005 $ millions Receipts Goods and services 129, , , , , , ,926 Goods 112, , , , , , ,696 Services 16,904 16,893 16,832 17,068 17,037 66,979 67,230 Travel 4,213 4,178 4,124 4,106 4,191 16,674 16,598 Transportation 2,965 3,049 3,111 3,240 3,241 11,750 12,129 Commercial services 9,290 9,224 9,140 9,257 9,143 36,888 36,708 Government services ,666 1,795 Investment income 14,323 16,498 16,885 16,060 15,995 48,213 61,599 Direct investment 7,407 8,716 9,150 7,942 7,738 26,017 32,600 Interest ,045 1,380 Profits 7,009 8,282 8,874 7,562 7,467 24,971 31,220 Portfolio investment 4,129 4,295 4,741 5,239 5,271 12,380 16,867 Interest 1,480 1,582 1,838 2,033 2,163 3,652 6,189 Dividends 2,649 2,712 2,903 3,206 3,108 8,728 10,679 Other investment 2,787 3,488 2,995 2,880 2,985 9,816 12,131 Current transfers 2,282 2,252 2,521 2,437 2,419 8,176 9,682 Private ,697 2,680 Official 1,638 1,579 1,897 1,773 1,766 5,479 7,002 Total receipts 145, , , , , , ,207 Payments Goods and services 120, , , , , , ,789 Goods 100, , , , , , ,395 Services 20,434 20,732 21,122 21,133 20,966 79,141 82,394 Travel 5,685 5,874 6,081 5,964 5,918 22,059 23,311 Transportation 4,721 4,823 5,058 5,035 4,943 17,566 19,194 Commercial services 9,773 9,779 9,726 9,884 9,849 38,503 38,865 Government services ,013 1,024 Investment income 18,760 18,259 19,848 20,101 20,123 70,735 73,446 Direct investment 8,584 7,555 8,569 8,456 8,900 34,212 31,091 Interest ,501 1,465 Profits 8,219 7,190 8,199 8,100 8,541 32,711 29,626 Portfolio investment 6,584 6,797 7,175 7,004 6,928 27,897 27,094 Interest 5,448 5,624 5,819 5,883 5,734 23,369 22,324 Dividends 1,136 1,173 1,355 1,120 1,195 4,528 4,770 Other investment 3,592 3,908 4,105 4,642 4,294 8,625 15,260 Current transfers 2,139 2,313 2,977 2,826 2,256 9,051 10,394 Private 1,330 1,417 2,129 1,915 1,409 5,172 6,913 Official ,879 3,481 Total payments 141, , , , , , ,629 Balances Goods and services 8,624 7,487 8,041 10,544 12,327 51,340 36,137 Goods 12,154 11,325 12,331 14,609 16,256 63,501 51,302 Services -3,530-3,839-4,290-4,065-3,928-12,162-15,165 Travel -1,472-1,696-1,957-1,859-1,727-5,385-6,713 Transportation -1,757-1,775-1,948-1,795-1,702-5,815-7,065 Commercial services ,615-2,157 Government services Investment income -4,437-1,761-2,963-4,041-4,128-22,522-11,847 Direct investment -1,176 1, ,162-8,195 1,509 Interest Profits -1,210 1, ,074-7,740 1,594 Portfolio investment -2,455-2,502-2,434-1,765-1,657-15,518-10,227 Interest -3,968-4,042-3,982-3,851-3,571-19,718-16,135 Dividends 1,513 1,540 1,548 2,086 1,913 4,200 5,908 Other investment ,110-1,762-1,309 1,191-3,129 Current transfers Private ,505-1, ,475-4,233 Official , ,600 3,521 Current account 4,330 5,665 4,622 6,113 8,362 27,943 23,578 Statistics Canada - Cat. no XIE 7

8 Industrial product and raw materials price indexes July In July, falling prices for metals and the strength of the Canadian dollar drove the prices of manufactured products down for a third consecutive month, while a jump in crude oil prices pushed raw materials prices upward. Prices for manufactured goods decrease again Index (1997=100) 120 Note to readers The Industrial Product Price Index (IPPI) reflects the prices that producers in Canada receive as the goods leave the plant gate. It does not reflect what the consumer pays. Unlike the Consumer Price Index, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs. Canadian producers export many goods. They often quote their prices in foreign currencies, particularly for motor vehicles, pulp, paper, and wood products. Therefore, a rise or fall in the value of the Canadian dollar against its US counterpart affects the IPPI. The Raw Materials Price Index (RMPI) reflects the prices paid by Canadian manufacturers for key raw materials. Many of these prices are set in a world market. Unlike the IPPI, the RMPI includes goods not produced in Canada. 115 IPPI in animals and animal products, non-ferrous metals and wood IPPI excluding petroleum and coal products Raw materials prices increase again Index (1997=100) JFMAMJJASONDJFMAMJJASONDJFMAMJJ RMPI From June to July, prices charged by manufacturers, as measured by the Industrial Product Price Index (IPPI), fell 0.7% following two consecutive monthly declines. The drop in prices essentially reflects lower prices for primary metal products, motor vehicles and other transportation equipment, as well as chemical products. However, higher prices for petroleum and coal products, and lumber and other wood products tempered the declineintheippi. On a 12-month basis, the IPPI edged down 0.3%, its first decrease after 22 consecutive advances. The most significant declines were in motor vehicles and other transportation equipment, and petroleum and coal products. The downward movement was slowed by a rise in prices for chemical products, fruit, vegetables and feed products, and tobacco and tobacco products, among others. The Raw Materials Price Index (RMPI) rose 3.9% from June to July, led almost exclusively by a jump in the prices of mineral fuels. The largest price decreases were RMPI excluding mineral fuels JFMAMJJASONDJFMAMJJASONDJFMAMJJ 2005 Compared with July, raw materials cost plants 3.5% more, a lower year-over-year rate of increase than the 4.9% recorded in June. The rise in the index was mainly due to prices for non-ferrous metals, while it was slowed by prices for mineral fuels. In July, the IPPI was (1997=100), down from June s revised level of The RMPI was (1997=100), up from June s revised level of Statistics Canada - Cat. no XIE

9 IPPI: Primary metal products lead decline in industrial prices Month over month, manufacturers prices were pulled downward mainly by falling prices for primary metal products and, to a lesser extent, for motor vehicles and other transportation equipment, and chemical products. However, the decline in the overall index was slowed by higher prices for petroleum and coal products, and lumber and other wood products. Prices for primary metal products dropped 3.9% in July after two consecutive monthly decreases. The index has fallen 10.9% since reaching a record high in April. Nickel products plummeted 21.0% in July, following a similar decline in June (-22.2%). Nickel prices are returning to more realistic levels as a result of high inventories and production cuts in the steel industry. Other decreases in metal prices had less effect on the movement of the primary metal products index, in particular, aluminum products (-1.9%) and iron and steel products (-0.9%). The price reductions for those metals reflect the slowdown of economic activity in the United States and high levels of inventories. The decline in the primary metals index was partly offset by a 2.5% increase in the prices of copper and copper alloys, due to lower production in Africa and Latin America and low inventories. Prices for motor vehicles fell 0.8%, their sixth consecutive month-over-month decline. Prices for motor vehicles are still affected by the rise in the Canadian dollar s value against the US currency. Prices for chemical products were down 1.6%, following a 0.1% dip in June. They were led by declines in prices for ammonia and urea-based fertilizer, both of which fell 18.3%. These two products were affected by weaker demand. The IPPI s decline was moderated by petroleum and coal products, which advanced 0.8% after a 2.6% drop in June. If the prices for petroleum and coal products had been excluded, the IPPI would have decreased 0.9% instead of 0.7%. Prices for lumber and other wood products rose 0.9% in July following a 0.6% gain in June. Lumber prices are still below the levels observed in previous years; specifically, they are 2.2% lower than the average observed for. In July, the only products that registered significant price increases were particleboard (+17.4%), and veneer and plywood (+6.1%). IPPI: First decrease in the 12-month change after 22 consecutive advances The IPPI edged down 0.3% from July to July, its first decline after 22 months of increases. The IPPI was pulled downward mainly by motor vehicles and other transportation equipment, as well as petroleum and coal products. Prices were also down for pulp and paper products, primary metals, and electrical and communication products. The IPPI excluding petroleum and coal grew 0.3%, a slower pace than in preceding months. Motor vehicle prices fell 4.5% compared with July, a larger decrease than the one observed in June (-2.8%). Petroleum and coal prices also picked up their downward pace, declining 5.0% compared with the 0.6% drop in the previous month. Prices for primary metals registered their first decrease (-1.8%) since November 2005, led by copper and copper alloys (-10.8%), aluminum products (-8.4%) and iron and steel products (-3.1%). The IPPI s downward movement was moderated by higher prices for chemical products (+3.5%), fruit, vegetables and feed products (+3.8%), tobacco and tobacco products (+14.7%) and meat, fish and dairy products (+2.0%). RMPI: Soaring prices for mineral fuels drive up raw materials prices Prices for raw materials rose 3.9% in July, a higher rate of increase than in the first six months of. The RMPI was led by a sharp increase in prices for mineral fuels. On the other hand, lower prices for animals and animal products, non-ferrous metals and wood dampened the advance in the overall RMPI. Mineral fuels jumped 9.5% as a result of a sharp increase in the price of crude oil (+11.9%). Without mineral fuels, the RMPI would have declined 0.9% from June instead of rising 3.9%. Prices for animals and animal products dropped 1.9%, mainly because of lower prices for cattle for slaughter (-4.0%). An increase in feed costs resulted in an oversupply of slaughter animals. There was a 0.6% decline in prices for non-ferrous metals, notably radioactive concentrates (-3.6%), zinc concentrates (-4.7%) and nickel concentrates (-21.0%). In contrast, lead prices soared 29.1% due to strong international demand, offsetting much of the decrease in other metal prices. On a 12-month basis, raw materials prices rose 3.5% in July, down from the 4.9% rate of increase in June. Prices for raw materials were propelled mainly by a 28.2% jump in prices for non-ferrous metals, which was dampened by a 5.8% drop in mineral fuels. Without mineral fuels, the RMPI would have increased 14.2% instead of 3.5%. Non-ferrous metals accounted for most of the 12-month increase, with prices rising 28.2%, mainly on the strength of year-over-year advances in the prices of radioactive concentrates and lead concentrates. Statistics Canada - Cat. no XIE 9

10 Prices were also up from the previous year in the case of vegetable products (+15.3%), wood (+10.5%) and animals and animal products (+1.6%). Impact of the exchange rate The value of the Canadian dollar against the US dollar rose 1.4% from June to July. Consequently, without the effect of the exchange rate, the change in the IPPI would have been a 0.3% decline instead of a 0.7% decline. On a 12-month basis, the value of the Canadian dollar increased 7.6% against the US dollar. If the impact of the exchange rate had been excluded, producer prices would have risen 1.7% instead of falling 0.3% between July and July. Prices for intermediate goods decline for a third consecutive month Prices for intermediate goods fell 0.8% between June and July, their third straight month-over-month decline. The reduction in prices was spread across all product categories except petroleum and coal products, and lumber and other wood products. The biggest contributors to the decrease were primary metal products, chemical products, and pulp and paper products. Producers of intermediate goods received 0.5% more for their products in July than in July. The majority of the increase was due to chemical products, fruit, vegetables and feed products, and meat, fish and dairy products. However, the year-over-year advance was slowed by lower prices for petroleum and coal products, pulp and paper products, primary metal products, lumber, motor vehicles, and electrical and communication products. Prices for finished products pulled down by motor vehicle prices From June to July, prices for finished products edged down 0.4%, their fourth consecutive monthly decrease. The decline was led by lower prices for motor vehicles, petroleum and coal products, machinery and equipment, and electrical and communication products. Motor vehicles, and electrical and communication products are more sensitive to exchange rate changes. The few products that posted price increases, such as knitted products and clothing, and lumber and other wood products, had little impact on the monthly price decline of finished goods. Since July, prices for finished products have fallen 1.5%, the first decrease in eight months. Prices were down for motor vehicles, petroleum and coal products, and machinery and equipment. The index s decline was moderated by higher prices for tobacco and tobacco products, chemical products as well as meat, fish and dairy products. Available on CANSIM: tables to and Definitions, data sources and methods: survey numbers, including related surveys, 2306 and The July issue of Industry Price Indexes ( XWE, free) will soon be available. The industrial product and raw material price indexes for August will be released on September 28. For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services ( , fax: , prices-prix@statcan.ca) ordanielle Gouin ( , danielle.gouin@statcan.ca), Prices Division. 10 Statistics Canada - Cat. no XIE

11 Industrial product price indexes (1997=100) Relative importance July June r July p July to July % change June to July Industrial product price index (IPPI) IPPI excluding petroleum and coal products Aggregation by commodities Meat, fish and dairy products Fruit, vegetables, feeds and other food products Beverages Tobacco and tobacco products Rubber, leather and plastic fabricated products Textile products Knitted products and clothing Lumber and other wood products Furniture and fixtures Pulp and paper products Printing and publishing Primary metal products Metal fabricated products Machinery and equipment Motor vehicles and other transport equipment Electrical and communications products Non-metallic mineral products Petroleum and coal products Chemicals and chemical products Miscellaneous manufactured products Miscellaneous non-manufactured products Intermediate goods First-stage intermediate goods Second-stage intermediate goods Finished goods Finished foods and feeds Capital equipment All other finished goods r revised p preliminary 1. This index is estimated for the current month. 2. Intermediate goods are goods used principally to produce other goods. 3. First-stage intermediate goods are items used most frequently to produce other intermediate goods. 4. Second-stage intermediate goods are items most commonly used to produce final goods. 5. Finished goods are goods most commonly used for immediate consumption or for capital investment. Raw materials price indexes (1997=100) Relative importance July June r July p July to July % change June to July Raw materials price index (RMPI) Mineral fuels Vegetable products Animals and animal products Wood Ferrous materials Non-ferrous metals Non-metallic minerals RMPI excluding mineral fuels r p revised preliminary Statistics Canada - Cat. no XIE 11

12 Public sector employment Second (preliminary) Public sector employment continues to increase, although its relative importance in the total employed labour force remains constant. The public sector includes federal, provincial, territorial and local governments as well as government business enterprises. Public sector employment totalled 3.2 million in the second of, up 0.9% from the same period in. Public sector employment had reached a low of just under 2.7 million on average in the third of Since then, public sector employment has grown approximately 2.2% per year from 2000 to. However, employment in the public sector as a share of the total employed labour force has remained relatively constant. Since 2000, public sector employees have represented about 19% of the total employed labour force. Within the general government (federal, provincial and territorial as well as local governments, excluding health and educational institutions), only the federal component decreased. There were around 390,000 employees on average in the second, down 3.7% from the same of, when a large number of temporary employees had been hired for the Census. The decrease was partly offset by an increase in Canadian military employment, up 2.3% from the second of. Provincial and territorial general government employment grew to just over 360,000 employees, up 1.7% from the same in. Local general government also increased, reaching an estimated 395,000 employees, up 2.3% from the second in. The distribution of public sector employment by component has remained stable over the past 10 years, including the second of, when it was essentially unchanged compared with the second of. During the second of, the three levels of general government (federal, provincial/territorial and local) accounted for 35.2% of total public sector employment. Educational institutions accounted for 32.1%, health and social service institutions, 24.6%, and government business enterprises, 8.1%. The share of wages and salaries by component has changed slightly over the past 10 years, including the second of. From 1997 to, health and social service institutions share of total public sector wages and salaries increased from 19.9% to 22.5%, while the federal government s share rose from 14.3% to 16.4% and educational institutions share advanced from 9.2% to 10.2%. In contrast, over the same period, government business enterprises proportion of total public sector wages and salaries decreased from 10.9% to 8.7%, as did that of provincial/territorial general governments (from 13.5% to 12.4%), as well as that of local general governments (from 12.1% to 11.4%). Public sector employment 1 First Second thousands First Second Public sector 3,146 3,221 3,198 3,249 General government 1,085 1,145 1,104 1,145 Federal Provincial and territorial Local Educational institutions 1,032 1,030 1,050 1,042 Universities and colleges School boards Health and social services institutions Government business enterprises Numbers may not add up to totals due to rounding. 2. Includes vocational and trade institutions. Estimates of public sector employment and aggregate public sector wages and salaries for the second of are now available. The data for the first have been revised. Note: The public sector includes all economic entities controlled by government. It is comprised of four major components: federal government (ministries, departments, agencies and non-autonomous funds, and autonomous funds and organizations); provincial and territorial government (ministries, departments, agencies and non-autonomous funds, autonomous funds and organizations, universities and colleges, and health and social service institutions); local government (municipalities and non-autonomous funds, autonomous funds and organizations, and school boards); and government business enterprises (at the federal, provincial/territorial and local levels). Available on CANSIM: tables and Definitions, data sources and methods: number survey Data tables on public sector employment are also available online in the Summary tables module of our website. 12 Statistics Canada - Cat. no XIE

13 For a more detailed description of how public sector employment is defined and reconciled with other information sources, consult the document, Reconciliation of Public Sector Employment Estimates from Multiple Information Sources, atthelink:1713. For more information or to order data, contact Client Services ( ; pid-dipinfo@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Peter Elliott ( ; peter.elliott@statcan.ca), Public Institutions Division. Public school indicators 1998/1999 to 2004/2005 The report "Summary Public School Indicators for the Provinces and Territories", released today, provides a comprehensive examination of public school indicators for the provinces and territories during the academic years from 1998/1999 to 2004/2005. It examines trends in enrolment and the number of educators in public elementary and secondary schools, as well as basic financial statistics, such as total spending on education and spending per student. Between 1998/1999 and 2004/2005, enrolment in public elementary and secondary schools declined 1.9% to just under 5.3 million students. All provinces except Alberta and Ontario reported lower enrolment during this time. In Alberta, a total of 551,000 students were enrolled in public schools in 2004/2005, up 1.4% from 1998/1999. In Ontario, enrolment edged up 0.6% to 2.1 million. The largest decline in enrolment occurred in Newfoundland and Labrador, where the number of students has fallen 18.5% since 1998/1999. This is consistent with population estimates showing that the school-age population in Newfoundland and Labrador has also declined nearly 18.5% during this period, largely the result of continued migration to other Canadian provinces. Elsewhere, decreases in enrolment ranged from 10.5% in the Yukon to 1.4% in Quebec. These declines can be attributed to an aging population. The children of baby boomers are now starting their post-secondary education, contributing to the increased post-secondary enrolment in recent years. Total spending on public elementary and secondary education increased at a faster rate than inflation, as measured by the Consumer Price Index. In 1998/1999, total spending amounted to $35.7 billion. By 2004/2005, it had risen 24.6% to $44.5 billion, well above the 15% increase in inflation. Nationally, in 1998/1999, it cost on average $7,077 (current dollars) to educate a student in Canada. Six years later, this cost had increased 28% to $9,040. Among the provinces, the annual cost per student in 2004/2005 ranged from $7,600 in Prince Edward Island to $9,200 in Ontario, Manitoba and Alberta. There were just under 310,000 educators in Canadian public schools in 2004/2005, up 1.3% from six years earlier (based on full-time equivalents). The number increased in eight jurisdictions and declined in five. Among the provinces, the biggest increases in the number of educators occurred in Alberta, Prince Edward Island and Ontario. Note: The term "educator" refers not only to teachers, but to all employees in the public school system who are required to have teaching certification as a condition of their employment. This definition generally includes principals, vice-principals and professional non-teaching staff. Definitions, data sources and methods: number survey The report "Summary Public School Indicators for the Provinces and Territories, 1998/1999 to 2004/2005", part of the Culture, Tourism and the Centre for Education Statistics - Research Papers ( MIE050, free) is now available online. From the Publications module, under Free Internet publications, choose Education, then Culture, Tourism and the Centre for Education Statistics - Research Papers. For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free ; ; fax: ; educationstats@statcan.ca), Culture, Tourism and the Centre for Education Statistics. Computer and peripherals price indexes June In June, the index for commercial computers decreased 0.6% from May to 34.7 (2001=100). The index for consumer computers also declined, down 1.4% to In the case of computer peripherals, monitor prices decreased 2.7% to 51.1, while printer prices also fell, down 0.2% to These indexes are available at the Canada level only. Statistics Canada - Cat. no XIE 13

14 Available on CANSIM: tables and Definitions, data sources and methods: number survey For more information on these indexes, contact Client Services (toll-free ; ; To enquire about the concepts, methods or data quality of this release, contact Neil Killips ( ; Prices Division. Poultry and eggs (preliminary) During the first six months of, egg production totalled million dozen, a small decrease of 0.4% from the same period in. In June, egg production was down 1.4% compared with June. Available on CANSIM: tables , to , and Definitions, data sources and methods: survey numbers, including related surveys, 3425 and The August issue of Poultry and Egg Statistics, Vol. 4, no. 2 ( XWE, free) is now available online. From the Publications module, under Free Internet publications, choose Agriculture. For more information, or to enquire about the concepts, methods or data quality of this release, contact Bernadette Alain ( ; bernadette.alain@statcan.ca), or Client Services (toll-free ), Agriculture Division. Couriers and Messengers Services Price Index July The Couriers and Messengers Services Price Index (CMSPI) is a monthly price index measuring the change over time in prices for courier and messenger services provided by long and short distance delivery companies to Canadian-based business clients. The CMSPI increased 0.1% to (2003=100) in July. The courier portion advanced 0.1% on a monthly basis, while the local messengers component fell 0.3%. These indexes are available at the Canada level only. Available on CANSIM: table Definitions, data sources and methods: number survey For more information, contact Client Services (toll-free ; ; prices-prix@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Perry Kirkpatrick ( ; perry.kirkpatrick@statcan.ca), Prices Division. 14 Statistics Canada - Cat. no XIE

15 New products Poultry and Egg Statistics, April to June, Vol. 4, no. 2 Catalogue number XWE (free). Employment, Earnings and Hours, June, Vol. 85, no. 6 Catalogue number XIB (free). Culture, Tourism and the Centre for Education Statistics - Research Papers : "Summary Public School Indicators for the Provinces and Territories, 1998/1999 to 2004/2005", no.50 Catalogue number MIE050 (free). All prices are in Canadian dollars and exclude sales tax. Additional shipping charges apply for delivery outside Canada. Catalogue numbers with an -XWE, -XIB or an -XIE extension are Internet versions; those with -XMB or -XME are microfiche; -XPB or -XPE are paper versions; -XDB or -XDE are electronic versions on diskette; -XCB or -XCE are electronic versions on compact disc; -XVB or -XVE are electronic versions on DVD and -XBB or -XBE a database. How to order products To order by phone, please refer to: The title The catalogue number The volume number The issue number Your credit card number. From Canada and the United States, call: From other countries, call: To fax your order, call: For address changes or account inquiries, call: To order by mail, write to: Statistics Canada, Finance, 6 th floor, R.H. Coats Bldg., Ottawa, K1A 0T6. Include a cheque or money order payable to Receiver General of Canada/Publications. Canadian customers add 6% GST and applicable PST. To order by Internet, write to: infostats@statcan.ca or download an electronic version by accessing Statistics Canada s website ( FromtheOur products and services page, under Browse our Internet publications, choose For sale. Authorized agents and bookstores also carry Statistics Canada s catalogued publications. Statistics Canada - Cat. no XIE 15

16 Statistics Canada s official release bulletin Catalogue XIE. Published each working day by the Communications and library Services Division, Statistics Canada, 10G, R.H. Coats Building, 100 Tunney s Pasture Driveway, Ottawa, Ontario K1A 0T6. To access The Daily on the Internet, visit our site at To receive The Daily each morning by , send an message to listproc@statcan.ca. Leave the subject line blank. In the body of the message, type "subscribe daily firstname lastname". Published by authority of the Minister responsible for Statistics Canada. Minister of Industry,. All rights reserved. The content of this electronic publication may be reproduced, in whole or in part, and by any means, without further permission from Statistics Canada, subject to the following conditions: that it be done solely for the purposes of private study, research, criticism, review or newspaper summary, and/or for non-commercial purposes; and that Statistics Canada be fully acknowledged as follows: Source (or Adapted from, if appropriate): Statistics Canada, year of publication, name of product, catalogue number, volume and issue numbers, reference period and page(s). Otherwise, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form, by any means electronic, mechanical or photocopy or for any purposes without prior written permission of Licensing Services, Client Services Division, Statistics Canada, Ottawa, Ontario, Canada K1A 0T6. 16 Statistics Canada - Cat. no XIE